Brown, Martin
[VerfasserIn]
;
Kirschenmann, Karolin
[Sonstige Person, Familie und Körperschaft];
Spycher, Thomas
[Sonstige Person, Familie und Körperschaft]
Erschienen in:ZEW - Centre for European Economic Research Discussion Paper ; No. 17-026
Umfang:
1 Online-Ressource (66 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3009199
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 1, 2017 erstellt
Beschreibung:
We examine how the numeracy level of employees influences the quality of their on-the-job decisions. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the pre-crisis credit boom period when it is arguably more difficult to pick out risky borrowers